POLYCAB - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.6

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📊 Fundamental Analysis Report

• Stock Code: POLYCAB
• Market Cap: ₹1,15,989 Cr
• Current Price: ₹7,705
• 52W High/Low: ₹7,900 / ₹4,555
• EPS: ₹161
• Stock P/E: 47.9 vs Industry P/E: 24.5 ❗
• PEG Ratio: 1.47 🟡 (Fairly Valued)
• Book Value: ₹697 | P/B Ratio: ~11.05 ❗
• ROE: 21.4% | ROCE: 29.7% 🔥
• Debt to Equity: 0.01 🟢 (Virtually Debt-Free)
• Dividend Yield: 0.45% 💰
• Quarterly PAT: ₹675 Cr (↑18.8%)
• RSI: 61.9 | MACD: 83.4 📈

✅ Positive

• Exceptional ROE and ROCE indicate strong profitability and efficient capital deployment.
• Debt-free balance sheet enhances financial resilience and growth capacity.
• Quarterly PAT growth of 56.7% YoY reflects robust operational performance.
• Strong FII inflow (+2.51%) signals high foreign investor confidence.

⚠️ Limitation

• High P/E and P/B ratios suggest premium valuation compared to industry peers.
• RSI nearing overbought zone (>60), caution for short-term entry.
• Volume slightly below weekly average, indicating mild cooling in momentum.

📉 Company Negative News

• Stock trading near 52-week high may limit short-term upside.

📈 Company Positive News

• Strong quarterly earnings with PAT rising from ₹568 Cr to ₹675 Cr.
• Expansion in B2C electricals and export markets driving revenue growth.
• Positive MACD and DMA crossover support bullish technical outlook.

🏦 Industry

• POLYCAB operates in the electricals and cables sector, benefiting from infrastructure and housing demand.
• Industry P/E of 24.5 is significantly lower, suggesting POLYCAB trades at a premium.
• Sector growth supported by electrification, smart city projects, and rising consumer demand.

🧭 Conclusion

• Entry Zone: ₹7,300–₹7,500 (near DMA 50 and RSI neutral)
• Long-Term View: Strong fundamentals, growth visibility, and brand leadership make POLYCAB a solid long-term hold. Accumulate on dips for portfolio strength.